PSEG (PEG) Q3 Earnings Beat Estimates, Revenues Rise Y/Y
Public Service Enterprise Group Incorporated PEG, or PSEG, reported third-quarter 2023 adjusted operating earnings of 85 cents per share, which beat the Zacks Consensus Estimate of 75 cents by 13.3%. However, earnings decreased 1.2% from the prior-year reported figure.
The company reported quarterly GAAP earnings per share (EPS) of 27 cents in the third quarter of 2023 compared with 22 cents reported in the third quarter of 2022.
Total Revenues
Operating revenues came in at $2,456 millionin the third quarter, which beat the Zacks Consensus Estimate of $2,423.5 million by 1.3%. The top line also increased by 8.1% from the year-ago quarter’s $2,076 million.
In the quarter, electric sales volumes were 11,723 million kilowatt-hours, while gas sales volumes were 476 million therms.
Under electric sales, residential sales volumes were 4,518 million kilowatt-hours, down 9% from the prior-year quarter figure. Itscommercial and industrial sales volumes accounted for 7,133 million kilowatt-hours, registering a decline of 2% from the same period last year.
Other sales were 72 million kilowatt-hours, flat with the year-ago quarter figure.
Total gas sales volumes witnessed an increaseof14% in firm sales volumes and a drop of 12% in the non-firm sales volumes of gas from the year-ago quarter figure.
Public Service Enterprise Group Incorporated Price, Consensus and EPS Surprise
Public Service Enterprise Group Incorporated price-consensus-eps-surprise-chart | Public Service Enterprise Group Incorporated Quote
Highlights of the Release
In the third quarter of 2023, the operating income came in at $551 million compared with the operating income of $173 million in the year-ago quarter, reflecting massive growth from the prior-year period. Total operating expenses were $1,905 million, down 9.2% from the year-ago quarter.
Segmental Performance
PSE&G: The net income was $403 million, up from $399 million in the prior-year quarter.
PSEG Power & Other: Adjusted operating earnings were $22 million compared with operating earnings of $30 million in the prior-year quarter.
Financial Update
The long-term debt (including the current portion of the long-term debt) as of Sep 30, 2023 was $19,734 million compared with $20,270 million as of Dec 31, 2022
PSEG generated $3,096 million in cash from operations during the nine months ended Sep 30, 2023 compared with the $701 million generated in the prior-year period.
2023 Guidance
The company reaffirmed its 2023 guidance. PEG expects its adjusted operating earnings in the range of $1,700-$1,750 million and adjusted EPS in the range of $3.40-$3.50. The Zacks Consensus Estimate for earnings is currently pegged at $3.45 per share, in line with the midpoint of the company’s guided range.
PSEG expects its PSE&G adjusted operating earnings in the range of $1,500-$1,525 million for 2023. It anticipates PSEG Power & Other adjusted operating earnings in the band of $200-$225 million.
Zacks Rank
PSEG currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Utility Releases
PG&E Corporation’s PCG adjusted EPS of 24 cents in the third quarter of 2023 lagged the Zacks Consensus Estimate of 28 cents by 14.3%. The bottom line decreased 17.2% from the year-ago quarter’s reported figure.
In the third quarter, PCG reported total revenues of $5,888 million compared with $5,394 million in the year-ago period. Operating revenues missed the Zacks Consensus Estimate of $5,946.1 million by 0.9%.
NextEra Energy, Inc. NEE released third-quarter 2023 adjusted earnings of 94 cents per share, which beat the Zacks Consensus Estimate of 86 cents by 9.3%. The bottom line was also up 10.6% from the prior-year quarter. The year-over-year improvement was due to the solid performances of Florida Power & Light Company and NextEra Energy Resources.
For the third quarter, NextEra’s operating revenues were $7,172 million, which lagged the Zacks Consensus Estimate of $7,453 million by 3.8%. However, the top line improved 6.7% year over year.
CenterPoint Energy CNP reported third-quarter 2023 adjusted earnings of 40 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents by 8.1%. The bottom line also improved 25% from the year-ago quarter’s figure, driven by regulatory recovery and favorable weather.
CNP generated revenues of $1,860 million, down 2.3% from the year-ago quarter’s reported figure. The top line missed the Zacks Consensus Estimate of $1,910.7 million by 2.7%.
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